Kinder MorganKMIThe company said on Wednesday it continued to be bullish on the outlook for natural gas demand due to increased demand from liquefied natural gas (LNG) export facilities and rising exports to Mexico.

The United States was the largest LNG exporter in 2023, with 8.6 million tons of LNG exported from U.S. terminals in December. The U.S. Energy Information Administration projects North America's LNG export capacity will increase to 24.3 billion cubic feet per day (Bcf/d) by the end of 2027, driven in part by new plants in Mexico and Canada.

"The outlook for U.S. natural gas is very bright. It has a positive impact on both our existing business and our ability to expand," CEO Kimberly Dang said on an investor call.

The comments came days after the company released fourth-quarter earnings (link) that showed weakness in its natural gas pipeline business.

Kinder Morgan said growing demand for natural gas has led to higher pipeline utilization, driving the company's new projects. Of its $3 billion project backlog, about $2.2 billion is related to natural gas.

The company has the largest natural gas transmission network in the United States, transporting approximately 40% of the natural gas production in the United States.

Kinder Morgan said it is also working on several projects to bring more gas supplies to supply-strapped southeastern markets.